In situations where new technologies are considered complementary to workers, demand for these workers will ________, resulting in ________ in the equilibrium wage.
A)increase; a decrease
B)increase; an increase
C)decrease; a decrease
D)decrease; an increase

Question

Quizplus · Accepted Answer

When new technologies are considered complementary to workers, they enhance the productivity of workers and, as a result, increase demand for these workers. An increase in demand, in turn, increases the equilibrium wage. Therefore, option B is the correct answer.

In Situations Where New Technologies Are Considered Complementary to Workers